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Spain Construction Market Size 2025-2029

The spain construction market size is forecast to increase by USD 33.9 billion at a CAGR of 5.4% between 2024 and 2029.

The Spanish construction market is experiencing significant growth, driven by the increasing focus on the development of smart city projects and the in government spending on public infrastructure. These trends are creating lucrative opportunities for both local and international players in the industry. However, the market is not without challenges, as high energy and construction material prices continue to pose significant cost pressures. Despite these challenges, the Spanish construction sector is expected to continue its upward trajectory, with the potential for strong returns for companies that can effectively navigate these market dynamics. The smart city initiatives, which prioritize sustainable and technologically advanced urban development, offer particular opportunities for innovation and differentiation. Companies seeking to capitalize on these trends should consider strategic partnerships and investments in sustainable technologies to stay competitive in the market. Additionally, those able to manage cost pressures through efficient operations and supply chain management will be well-positioned for success. Overall, the Spanish construction market presents a compelling investment opportunity for companies looking to expand their footprint in Europe and contribute to the development of modern, sustainable urban infrastructure.

What will be the size of the Spain Construction Market during the forecast period?

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The construction industry in the US is experiencing significant growth across various sectors. Specialty trade contractors and residential building activities continue to dominate the market, while commercial building activities and public projects are also gaining momentum. The type of construction is evolving, with a focus on smart infrastructure and advanced materials such as 3D printing. Infrastructure projects are a key area of investment, driven by the need for modernization and efficiency. The use of technology is transforming the industry, with digital tools and advanced materials playing a crucial role in streamlining processes and improving project outcomes. Commercial buildings construction is also embracing innovation, with a shift towards sustainable and energy-efficient designs. Overall, the construction market is dynamic and forward-looking, driven by the need for efficiency, innovation, and sustainability.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ApplicationCommercialResidentialEnd-userLarge contractorSmall contractorTypeRehabilitation and maintenanceNew projectsGeographySpain

By Application Insights

The commercial segment is estimated to witness significant growth during the forecast period.

In Spain's construction market, the commercial segment is experiencing notable growth. This expansion is driven by substantial investments in commercial real estate and the industrial sector. The moderate increase in commercial office space and industrial development is primarily due to the rising demand for new administrative spaces and office buildings. However, the renovation and modernization of existing structures are also significant contributors to market growth. These renovation projects often incorporate advanced energy-efficient technologies, such as low-VOC paints, energy-efficient insulation, and water-saving tech, to reduce environmental impact and improve sustainability. Additionally, the integration of digital technologies, including virtual reality, augmented reality, and digital twins, is transforming the construction process, enabling faster project delivery and more precise planning. Private sector investments in residential building activities, including affordable housing programs and modular construction, are also gaining momentum. The construction industry in Spain is embracing new technologies, such as 3D printing, recycled steel, and renewable energy, to address population growth and economic growth in urban areas. The adoption of smart infrastructure, including autonomous vehicles and solar farms, is further enhancing the sustainability of construction projects. Despite the challenges posed by environmental issues and the need for energy grid modernization, the market remains dynamic and forward-looking.

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The Commercial segment was valued at USD 73.00 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyze

The size of the construction industry in Spain as a share of its gross domestic product (GDP) increased slightly in 2023. That year, construction activities amounted to *** percent of the country's GDP. Before the burst of the housing bubble this sector used to represent more than ten percent of the Spanish gross domestic product.

The Spain construction market size reached USD 110.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 140.0 Billion by 2033, exhibiting a growth rate (CAGR) of 3.17% during 2025-2033. The market is driven by increasing infrastructure investments, rapid urbanization, escalating demand for residential and commercial spaces, favorable government initiatives focusing on sustainable development and green buildings, and the recovery of the tourism sector, which fuels hospitality and related construction projects.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type, sector, category, and end-user.

In 2024, the Spain Construction Market reached $125.02 billion, and is projected to surge to $176.45 billion by 2030 due to surge in infrastructure investment

Market Overview The Spanish construction industry is anticipated to grow at a CAGR of 3.00% during the forecast period of 2025-2033, reaching a market size of USD 192.55 million by 2033. Key drivers for this growth include the government's infrastructure development plans, increasing urbanization, and a growing demand for residential and commercial construction. The residential sector is expected to witness the highest growth, driven by increasing population and rising disposable incomes. Key Trends and Players The Spanish construction industry is experiencing a shift towards sustainable and green construction practices. There is also an increasing adoption of digital technologies, such as Building Information Modeling (BIM) and virtual reality, to improve efficiency and reduce project costs. Major players in the industry include ELECNOR SA, ACS ACTIVIDADES DE CONSTRUCCION Y SERVICIOS SA, ACCIONA CONSTRUCCION SA, TSK ELECTRONICA Y ELECTRICIDAD SA, and COBRA INSTALACIONES Y SERVICIOS SA. These companies are actively involved in various infrastructure and construction projects across the country, including high-speed rail networks, energy plants, and commercial developments. This report provides a comprehensive analysis of the Spain construction industry, covering market size, growth trends, key players, and industry dynamics. The report includes detailed market segmentations based on sector, region, and product type, providing valuable insights into specific areas of the industry. Key drivers for this market are: Increasing demand for Housing, Increasing demand for transportation infrastructure. Potential restraints include: High Cost of Labour, Rising material costs. Notable trends are: Increase in housing construction drives the market.

The Spanish construction industry, valued at €192.55 million in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 3.00% from 2025 to 2033. This growth is driven by several key factors. Increased government investment in infrastructure projects, particularly in transportation and renewable energy initiatives, is a significant catalyst. Furthermore, a recovering housing market, fueled by both domestic demand and tourism-related construction, contributes to the sector's expansion. The residential sector is expected to remain a dominant force, while the commercial and industrial segments will also see considerable activity, driven by ongoing economic recovery and business expansion. However, the industry faces certain challenges. Fluctuations in material costs, skilled labor shortages, and potential economic slowdowns pose risks to sustained growth. Competition amongst major players, including ACCIONA Construccion SA, Elecnor SA, and Ferrovial Agroman SA, is intense, necessitating strategic investments in innovation and efficiency to maintain market share. The sector's future trajectory will hinge on the effective management of these challenges alongside continued government support for infrastructure development. The segmentation of the Spanish construction market reveals diverse opportunities. Infrastructure projects, especially transportation networks and energy infrastructure upgrades, represent significant growth potential. The energy and utilities segment is experiencing a boom due to Spain's focus on renewable energy sources, creating demand for new power plants, grid upgrades, and related infrastructure. The commercial sector benefits from sustained economic activity and increased investment in office spaces and retail developments. The industrial segment is experiencing a resurgence thanks to renewed manufacturing activity and logistical improvements. Monitoring these segment-specific trends is crucial for businesses operating within the Spanish construction sector to effectively target opportunities and allocate resources strategically. Analyzing the performance of key companies and their market strategies will be essential to accurately predict market share and growth in the coming years. Recent developments include: July 2023: The company has decided to use hydrogen fuel cells to contribute to decarbonizing its construction projects in its upcoming two projects. The company would install a zero-emission hydrogen fuel cell generator set (GEH2) developed by EODev for these projects. In addition, the company has installed a “zero emissions” lighting tower based on a hydrogen fuel cell developed by ATLAS COPO. This prototype has been installed in the area adjacent to the project’s office huts., May 2023: Cosentino, the leading global manufacturer and distributor of innovative and sustainable surfaces for architecture and design, has announced plans to expand its manufacturing to North America, which would mark Cosentino’s first manufacturing facility beyond its Industrial Park in Almería, Spain, and natural stone factory in Vitoria, Brazil. Subject to closing, the ground is slated to break in Jacksonville, Florida, by January 2025 at the latest, with a target completion date by the end of 2028 and an estimated investment of USD 270 million (EUR 249,5 million).. Key drivers for this market are: Increasing demand for Housing, Increasing demand for transportation infrastructure. Potential restraints include: Increasing demand for Housing, Increasing demand for transportation infrastructure. Notable trends are: Increase in housing construction drives the market.

ACS Group and Ferrovial stood out as the most internationalized Spanish construction companies, with 86 and 83 percent of their revenue derived from international orders, respectively. On the contrary, less than half the revenue of FCC were international.

The Spain Construction Market size was valued to be USD 6.5 Billion in the year 2024, and it is expected to reach USD 14.45 Billion in 2032, at a CAGR of 10.5% over the forecast period of 2026 to 2032.

Key Market Drivers

Infrastructure Investment: Spain’s government has been investing in large infrastructure projects such as transportation networks, smart cities, and renewable energy infrastructure, which has fueled the growth of the construction industry. The Spanish government has allocated €79 billion for infrastructure development under the Recovery, Transformation, and Resilience Plan (2021-2026), with a focus on sustainable mobility, urban renewal, and energy-efficient building renovations. This public investment encourages significant private-sector participation.

This statistic shows the revenue of the industry “construction of buildings“ in Spain by segment from 2012 to 2018, with a forecast to 2025. It is projected that the revenue of construction of buildings in Spain will amount to approximately 44.64 billion U.S. Dollars by 2025.

Spain Construction comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

In 2023, Ferrovial was the Spanish construction company with the highest market capitalization, which was more than twice higher than that of the next company in the list: Acciona. The Madrid-based construction company Actividades de Construcción y Servicios (ACS) ranked third with a market cap of over 8 billion U.S. dollars. This company topped the list of leading construction companies in Spain in 2023, ranked by revenue.

This statistic shows the revenue of the industry “construction of other civil engineering projects n.e.c.“ in Spain from 2012 to 2018, with a forecast to 2025. It is projected that the revenue of construction of other civil engineering projects n.e.c. in Spain will amount to approximately 1,042.10 million U.S. Dollars by 2025.

The Structural Metal Product Manufacturing industry is heavily reliant on the performance of its key markets, like the construction sector. From putting together frameworks for residential homes, offices and entertainment venues to manufacturing metal doors and windows, the output of this industry plays a key role in shaping Europe's urban landscape. As Europe's construction sector quickly regained momentum after the pandemic, manufacturers benefitted from , as well as pent-up demand for housing, both commercial and residential.Costruction activity tumbled once again in 2022 as Russia's invasion of Ukraine created more economic disruption and Europe was crippled by skyrocketing inflation. Beyond material costs, steep inflation, driven by energy price hikes and supply chain issues, led to greater operating expenses and higher borrowing costs for construction firms as key interest rates rose, too. Europe will see a moderate recovery and a slight uptake in construction activity in 2025, following a challenging few years. Therefore, over the five years through 2025, revenue is set to swell at a compound annual rate of 4.8% to €247.1 billion, including a 1.9% hike in 2025. Major construction projects, like France's Grand Paris Express metro project, have supported sales of structural steel products, offering a stable and steady stream of revenue. also have propped up demand for structural metal products, particularly prefabricated buildings, supporting revenue growth in the last five years. Looking ahead, the next five years look favourable for the industry. Metal structure manufacturers' revenue is forecast to creep upwards at a compound annual rate of 5.8% over the five years through 2030 to €327.4 billion. Investment in commercial construction and communications infrastructure is set to drive demand for metal structures like steel foundations and components used in building transmission towers. Furthermore, there is likely to be a strong demand for housing in Europe in the coming years. Government policies targeting residential construction, including France's social housing units plan and Spain's State Housing Plan, are also set to support revenue expansion.

In 2023, the revenue of the building construction industry of Spain stood at about 99.61 billion Euros. Between 2021 and 2023, the revenue rose by approximately 27.50 billion Euros.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.

Spain Construction Equipment Market Size, Share, Trend & Market Analysis By Type, By Distribution Channel, By End User, Competition, Forecast & Opportunities.

The Spain Adhesives Market report segments the industry into End User Industry (Aerospace, Automotive, Building and Construction, Footwear and Leather, Healthcare, Packaging, Woodworking and Joinery, Other End-user Industries), Technology (Hot Melt, Reactive, Solvent-borne, UV Cured Adhesives, Water-borne), and Resin (Acrylic, Cyanoacrylate, Epoxy, Polyurethane, Silicone, VAE/EVA, Other Resins).

Spain Construction equipment Rental market Size, Share, Trend & Market Analysis By Type, By Distribution Channel, By End User, Competition, Forecast & Opportunities.

Spain Adhesives Market size was valued at USD 2.85 Billion in 2024 and is projected to reach USD 4.37 Billion by 2032, growing at a CAGR of 5.61% from 2026 to 2032.Key Market Drivers Expanding Construction Sector: The Spanish construction industry is expanding rapidly, with total construction output rising by 4.2% in 2023 to €134.7 billion. Residential construction permits have increased by 8.6% year on year, resulting in a significant demand for various adhesive products in building applications.Automotive Manufacturing's Resurgence: Spain's automotive production increased by 7.3%, reaching 2.45 million vehicles. This expansion has directly increased demand for high-performance structural and specialty adhesives, as modern vehicles use approximately 15-18 kg of adhesives per unit, displacing traditional mechanical fasteners.

This statistic shows the revenue of the industry “manufacture of bricks, tiles and construction products, in baked clay“ in Spain from 2012 to 2018, with a forecast to 2025. It is projected that the revenue of manufacture of bricks, tiles and construction products, in baked clay in Spain will amount to approximately 475.01 million U.S. Dollars by 2025.